A TV Company finds that in 2009, the cost to manufacture 200 TV sets was Rs. 6,16,000, which it sold at Rs. 4,000 each. Cost was made up of:
|
Materials |
2,00,000 |
|
Direct wages |
3,00,000 |
|
Factory expenses |
60,000 |
|
Office expenses |
56,000 |
For 2010, it estimates that
- Each T.V. will require materials of the value of Rs. 1,000 and wages Rs. 1,500.
- Absorb factory expenses on the basis of direct wages.
- Absorb office expenses on the basis of works cost. Prepare a statement showing the profit it should make per unit if it enhances the price of a TV by Rs. 80. (Bharathidasan University. Adapted)